G7 finance chiefs aim to calm uneasy global markets

Washington, October 19, 2007

With global economic growth waning and a credit crunch threatening, finance chiefs from rich nations were gathering to mull how to control strains in financial markets and keep expansion going.

Ahead of the Group of Seven meeting of finance ministers and central bankers, France called for more attention to be paid to the soaring value of the euro, which hit a lifetime high against the US dollar on Thursday. France worries euro strength will undercut European exports and slow growth there.

But the French call found scant support in Washington, where US officials stressed financial market turmoil will be the focus of the meeting between the US, Britain, Canada, France, Germany, Italy and Japan.

Canadian Finance Minister Jim Flaherty said common ground might be found by toughening up demands that China let its yuan currency rise in value faster, which could help ease the upward pressure on the euro.

A closing communique late on Friday will be followed by a special 'outreach' dinner with officials from countries including China, Kuwait and Saudi Arabia that operate so-called sovereign wealth funds whose unregulated and large-scale investment activities make the G7 nervous. Reuters